Biosimilars the government plans to allocate us 70

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Biosimilars: The government plans to allocate US$ 70 million for local players to develop Biosimilars. Sun Pharma being the 4 th largest company is well on it ways to growth with the same pace as of the industry. It gets 26% revenue for India and rest from International market. The Company significantly enhanced its global specialty pipeline through acquisitions and partnerships, recently it made an entry to Japan. 26% 45% 29% India US Rest Research and development(R&D) capabilities have enabled Sun Pharma to produce key technology- intensive products, enhancing its presence in international markets. The Company employs about 2,000 research scientists working in multiple R&D centers equipped with cutting-edge technologies for research. With their expert knowledge in developing generic drugs and Active Pharmaceutical Ingredients (APIs). The cumulative spend on R&D for past 10 years stand at $100 billion, which shows the significant investment in R&D. FY13 FY14 FY15 FY16 FY17 130 173 320 352 345 R&D Spend 8 | P a g e
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The other key business apart from Generic Drugs are Active Pharmaceutical Ingredients (API), that contributes 5% in overall company revenue, it has 14 API manufacturing units and contain approximately 300 API’s, estimated to scale up 20 API’s annually. SWOT ANALYSIS Strengths: The Company significantly enhanced its global specialty pipeline through acquisitions and partnerships, which enabled it to capture key markets. It also introduced 4 new products in FY17. Wide reach of international markets, helps the company to growth significantly. Significant investment in R&D and improving API’s revenues. Double digit growth is seen in all key areas. ICRA Ltd. has reaffirmed the highest credit rating of AAA for the bank facilities, enables company to get long term/short term borrowings. Weakness: Net Profit margins are flat Decline in revenues from its US subsidiaries like Taro (8% decline in FY17) is hurting the companies growth. Delay in on time approvals from regulatory bodies for key facilities like Halol, impacting the business, which contributes about 8-10 percent of its overall revenue. Opportunities: Entry in to Japan market in 2016, allows company to capture the market share by ramping up Product Marketing and Distribution. Currently India imports 60% of API’s, Sun Pharma has a good opportunity to capture the domestic market. Threats: Major market share in US with 45%, The US generics industry is facing rapidly changing market dynamics. Increased competitive intensity and customer consolidation is leading to pressure on pricing. Amazon entry to the Pharma industry is a major threat to most of the US centric companies. Few Indian pharma companies including sun pharma is probed for “Price Fixing/collosun”, this would be major one to be watched out.
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